Targets 20-Day MA at 28.49
Keep in mind that silver remains in a downtrend. It needs to first close above the 20-Day line and then above the most recent swing low at 29.23 before it is cleared to continue higher. In addition to the above notes, there are other signs that the bearish correction may be over. Last week’s decline reached an extended target for a descending ABCD pattern at 26.74. Support was seen just below there at the week’s low of 26.47. In other words, support was seen around a pre-determined price target. That low, if it is retained, provides a new higher swing low for the developing uptrend price structure.
Weekly Resistance at 28.67
Before the 29.23 price level is encountered there is potential resistance around last week’s high of 28.67. A bullish advance above that price level will trigger a bullish reversal on the weekly chart. Subsequently, a daily close above that price level will confirm the weekly reversal. That will provide another clear sign of strengthening for the price of silver and will put it in a strong position to potentially breakout above the 29.23 swing high. And the that swing high is also a weekly high.
50-Day MA at 29.36 is Higher Target
The 50-Day MA is at 29.36 currently but remains slanted down. It may converge with or around the 29.23 swing high before it is reached. Nevertheless, it represents another price level to watch for potential resistance. Also, as with any pivot, a breakout above the line will further confirm strength of the developing uptrend. The next key higher price zone of concern would then be around the prior swing high of 31.86 from July (C).
For a look at all of today’s economic events, check out our economic calendar.